Employee Joining Letter Template for Saudi Arabia

An Employee Joining Letter is your formal document that establishes the employment relationship between you and your new hire under Saudi Arabian labor law. This critical document serves as both an employment offer and preliminary contract, ensuring compliance with Royal Decree No. M/51 and related employment regulations while clearly communicating the terms of employment to your prospective employee.

When do you need this document?

You need an Employee Joining Letter when extending formal employment offers to candidates who have successfully completed your recruitment process. This applies whether you're hiring Saudi nationals under Saudization requirements, expatriate workers requiring work permits, or temporary employees for project-based work. The letter is essential when onboarding employees across all sectors, from oil and gas to technology startups, and must be issued before the employee's official start date. You also need this document when converting internships to full-time positions, promoting internal candidates to new roles with different terms, or rehiring former employees under updated contract conditions.

Key legal considerations

Your Employee Joining Letter must include specific compensation details that comply with the Wage Protection System, ensuring electronic salary transfers through approved Saudi banks. You must clearly outline the probation period, which cannot exceed 90 days under Saudi Labor Law, and specify all allowances including housing, transportation, and annual leave entitlements. The document should reference mandatory social insurance registration through GOSI and include anti-harassment policy acknowledgments as required by recent regulatory updates. You must also address working hours compliance, ensuring adherence to the maximum 48-hour work week and Friday rest day requirements. Additionally, your letter should include termination clauses that respect both parties' rights under Saudi labor law and specify any non-compete or confidentiality obligations.

Legal requirements in Saudi Arabia

Under Saudi Labor Law, your Employee Joining Letter must be written in Arabic or include Arabic translations for key terms, particularly for Saudi national employees. You must ensure the document complies with Ministerial Resolution No. 136 regarding work contract authentication and maintain copies for labor ministry inspections. The letter must specify the employee's work location and any mobility requirements, especially important given Saudi Arabia's geographic diversity and major city employment hubs. You're required to include social insurance information and ensure the employee understands their GOSI coverage and contributions. For expatriate employees, your letter must align with work permit conditions and include sponsor responsibilities. The document must also reflect current minimum wage requirements and comply with Vision 2030 employment initiatives, particularly regarding Saudi national employment quotas and women's workforce participation requirements.